Ameriprise Financial(AMP) - 2024 Q1 - Quarterly Report

Financial Performance - For the first quarter of 2024, adjusted operating earnings were $878 million, compared to $798 million in the same period of 2023, reflecting a growth of approximately 10%[256] - The adjusted operating earnings per diluted share for Q1 2024 was $8.39, up from $7.25 in Q1 2023, representing a year-over-year increase of 15.7%[256] - Net income for the three months ended March 31, 2024, was $990 million, a significant increase of $573 million compared to $417 million in the prior year[267] - Total revenues for the three months ended March 31, 2024, were $4.325 billion, an increase of $480 million, or 12%, compared to $3.845 billion in the prior year[267] - Pretax income surged by $723 million, resulting in a total of $1.219 billion for the three months ended March 31, 2024, compared to $496 million in the prior year[268] - The effective tax rate for the three months ended March 31, 2024, was 18.8%, up from 15.9% in the prior year period, primarily due to higher pretax income and a decrease in foreign tax credits[273] Assets Under Management - As of March 31, 2024, Ameriprise Financial has $1.4 trillion in assets under management and administration[253] - Total Assets Under Management (AUM) increased by $126.1 billion, or 13%, to $1.1 trillion as of March 31, 2024, compared to $1.0 trillion as of March 31, 2023[263] - Advice & Wealth Management AUM rose by $86.7 billion, or 20%, to $518.1 billion, while Asset Management AUM increased by $44.4 billion, or 7%, to $652.1 billion[264] - Total Assets Under Administration (AUA) increased by $63.2 billion, or 27%, to $297.5 billion as of March 31, 2024, driven by equity market appreciation[263] Capital and Equity - Total Ameriprise Financial, Inc. shareholders' equity as of March 31, 2024, was $4.331 billion, an increase from $4.032 billion a year earlier[258] - Available Capital for Capital Adequacy as of March 31, 2024, was $5.135 billion, down from $5.418 billion at the end of 2023[259] - The total shareholders' equity, excluding accumulated other comprehensive income (AOCI), was $6.505 billion as of March 31, 2024, compared to $6.069 billion a year earlier[258] - The company has $2.6 billion remaining under its share repurchase authorization as of March 31, 2024[305] Investment Income and Expenses - Net investment income increased by $203 million, or 29%, to $901 million for the three months ended March 31, 2024, primarily due to growth in customer deposits and rising interest rates[270] - Distribution expenses rose by $193 million, or 16%, to $1.419 billion, reflecting higher advisor compensation and increased transactional activity[271] - Banking and deposit interest expense increased by $76 million, or 74%, reflecting higher average crediting rates and volumes on certificates and deposits[270] - Total expenses for the three months ended March 31, 2024, were $649 million, an increase of $15 million, or 2%, compared to the prior year period[288] Strategic Focus and Market Conditions - The company continues to focus on strategic objectives amid macroeconomic uncertainties, including interest rate fluctuations and market volatility[253] - The daily average of the S&P 500 index increased by 25% from 3,998 in Q1 2023 to 4,996 in Q1 2024[262] - The company anticipates continued growth in client acquisition and retention strategies, alongside expected trends in lower-risk product shifts[310] Shareholder Returns - Regular quarterly dividends paid to shareholders totaled $143 million for the three months ended March 31, 2024, compared to $138 million for the same period in 2023[305] - The company repurchased a total of 1.2 million shares of common stock at an average price of $409.96 per share during the three months ended March 31, 2024[305]